Costs that decrease as a firm acquires additional current assets are called _____ costs.
A)carrying
B)shortage
C)debt
D)equity
E)payables

Question

Quizplus · Accepted Answer

Shortage costs decrease as a firm acquires additional current assets because there is less likelihood of running out of stock or not being able to meet short-term obligations, thus reducing the costs associated with shortages.

Costs That Decrease as a Firm Acquires Additional Current Assets